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  1. #1
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    Formula for Return on Investment (2003)

    Good morning,
    I have been asked by a friend to help with a statistical analysis and my excel knowledge usually is fine, but at the moment I

  2. #2
    5 Star Lounger
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    Re: Formula for Return on Investment (2003)

    <P ID="edit" class=small>(Edited by NYIntensity on 11-Jul-05 02:54. More info/considerations added [smile])</P>Jeannette, without knowing any values, it's pretty difficult to *imagine* the necessary info. The risk profiles would have to be stored somewhere (to be visible, like on separate tabs or something along those lines) in order to allow them to affect your forecasts. Forecasting risk is difficult because it's variable. The best you'll probably be able to do is show a "best case" and "worst case" scenario. Other than that, I'm not sure what you'd like to display. Expected returns can only be calculated by knowing the % return and whether dividends are paid monthly/quarterly, etc... All these factors will change your end amount. For example, if you have a customer interested in investing 10000 in a money market account that pays 7% interest monthly you can use a formula something like this:


    <table border=4><td></td><td><center>A</center></td><td><center>B</center></td><td><center>C</center></td><td>1</td><td>Initial investment amount</td><td>Interest Paid </td><td>7% </td><td>2</td><td>$10,000.00</td><td>=a2*$c$1</td><td>3</td><td>=A2+(B2)</td><td>=A3*$C$1</td></table>
    And so on and so forth, you can fill the formula down the sheet. Each row would forecast a payment period (month, quarter, year, etc, reinvesting the interest earned)
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    Jeremy
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  3. #3
    Uranium Lounger
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    Re: Formula for Return on Investment (2003)

    Does the IRR function look like it might help?
    Legare Coleman

  4. #4
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    Re: Formula for Return on Investment (2003)

    I think this is all too much for me.
    Thanks anyway

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